Challenger MD Nick Hamilton has called for potential changes to Australia’s financial advice industry to also take into account the needs of retirees.

“Access to affordable, quality advice is also crucial for retirees,” he told a life insurance conference last week.

“The system is expensive, bureaucratic and unaffordable for many – in fact, the Quality of Advice review found most older Australians say they need financial advice but can’t afford it.”

Mr Hamilton says the debate around the purpose of super is another anchor point for developing the retirement income system. Last month the Government launched a consultation paper seeking feedback on the benefits, phrasing and implementation of an objective for superannuation.

“As retirees live longer and macroeconomic changes like inflation become more difficult to manage, the importance of focusing superannuation on retirement income cannot be overstated,” he said.

“Each of these policies are positive steps forward. Done right the reforms can deliver consequential benefits to the lives of retirees and the broader society – economic and social.”

Challenger’s life business, its biggest earnings contributor, achieved an 11% rise in sales to a record $5.5 billion in the December half. The diversified investment group says the division’s results were driven by annuity sales, which rose 41% to an all-time high of $3.5 billion.